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Re: How to proportionate Land Tax

Initiate

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Hi  everyone

 

I have a question regarding land taxes. 

So lets say I bought a RESIDENTIAL property and I use 40% of this for my piano teaching business, I am claiming 40% of all occupancy & and running costs on this property. (I understand that if I claim loan interest etc, i will be liable for CGT for 40% of the property when I sell it).

 

However, for land tax, lets say its $500. Do I claim 40% of $500, which is $200, or do I need to use other methods to calculate this? (floor area, sqm x sqm or something) ???

 

Or can I not claim land tax at all?

 

Any reply or advice would be much appreciated. Thank you in advance

 

 

1 ACCEPTED SOLUTION

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Most helpful response

Taxicorn

Replies 1

@TaxAddict 

 

If you are running a business from home youe are liable for CGT regardless if you claim interest or not.

https://www.ato.gov.au/Business/Income-and-deductions-for-business/Deductions/Deductions-for-home-ba...

 

Home running expenses are based on floor area.

 

CGT will be based on MV of home when first started to use as business.

CGT will be calculated using number of days used as business.

 

Land tax would be claimable as per floor area %

https://www.ato.gov.au/law/view/document?DocID=TXR/TR9330/NAT/ATO/00001

 

 

https://www.ato.gov.au/General/Capital-gains-tax/Your-home-and-other-real-estate/Your-main-residence...

2 REPLIES 2

Most helpful response

Taxicorn

Replies 1

@TaxAddict 

 

If you are running a business from home youe are liable for CGT regardless if you claim interest or not.

https://www.ato.gov.au/Business/Income-and-deductions-for-business/Deductions/Deductions-for-home-ba...

 

Home running expenses are based on floor area.

 

CGT will be based on MV of home when first started to use as business.

CGT will be calculated using number of days used as business.

 

Land tax would be claimable as per floor area %

https://www.ato.gov.au/law/view/document?DocID=TXR/TR9330/NAT/ATO/00001

 

 

https://www.ato.gov.au/General/Capital-gains-tax/Your-home-and-other-real-estate/Your-main-residence...

Initiate

Replies 0

@macfanboy thank you so much!